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Title: Educational Aid Policy and Inequality: The Case for Merit- and Need-based Aid
Resulting in 1 citation.
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Hadavand, Aboozar |
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Educational Aid Policy and Inequality: The Case for Merit- and Need-based Aid Review of Social Economy 76,4 (2018): 535-562. Also: https://www.tandfonline.com/doi/abs/10.1080/00346764.2018.1525760 Cohort(s): NLSY97 Publisher: Taylor & Francis Group Keyword(s): Educational Costs; Financial Assistance; Wage Gap Permission to reprint the abstract has not been received from the publisher. Using model in which the assignment of skills to tasks is determined by relative productivities and are endogenously determined by ability, access to higher education, and technology, I find the effect of different educational aid schemes (including need-based aid, merit-based aid, or a combination of the two) on the distribution of wages. I calibrate the model using NLSY97 data and find that in general, determining what policy minimizes inequality depends on the elasticities of demand for higher education of each ability/human capital group, the labor shares of each group, and the share of resources devoted to each group. Given the model parameters, both merit-based and need-based policies are preferred to a policy based on both merit and need. Moreover, under the model parameters, a need-based policy reduces wage inequality more than a merit-based policy. |
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Bibliography Citation
Hadavand, Aboozar. "Educational Aid Policy and Inequality: The Case for Merit- and Need-based Aid." Review of Social Economy 76,4 (2018): 535-562.
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